All Forum Posts by: Freddie Chipres

-NYC

-I bought a property for $525k, I still owe 50% on it. Its currently 2 units and sits on a double lot that can be made into 2 three-family houses (6 units total), which will rent out for total of $16.5k a month. It'll cost $1.2M to build.

-Reason I have this info is because I've done the exact deal next door Lol. I bought the next door house a few years prior and developed the exact same 2 three-family houses, rented out for similar rent and sold them to build different projects. 

-I don't have the tax returns to take a construction loan on the anticipated project and my capital is invested in different projects right now, and won't be available for a while.

I have a paid for $2M house I can offer as collateral. Can I use this house as collateral to apply for a construction loan? Can I use future rental income as means to qualify for a loan? 

Hi Guys!

I am in the Chicagoland area and looking for a lender to refinance my home into an investment property. Any suggestions on who I should reach out to to start shopping around for best rates? I have talked with a few and Rocket Mortgage. Any help would be appreciated. Thanks in advance!

Hi BP Team,

I'm looking to make my first small multifamily purchase in San Francisco this year.  I'm lining up my financing but want to ensure I'm aware of the different mortgage programs being offered, and those which could be beneficial for multi-family.  So far, I have three:

1/ VA Loan (CalVet), as low as 0% down, no PMI, can roll closing costs into the loan, 6%, up to 4 units

2/ Citibank Homerun program, as low as 5% down, no PMI, $7500 towards closing costs, 5.75%, SFH & duplex only. Must buy in a low or moderate income census tract

3/ First Republic Eagle Community loan, 20% down, $5K towards closing, 4.75%, up to four units. Street-by-street address qualification (if not a designated area, interest jumps to 5.15%).  There is a cash deposit requirement against the value of the loan (10-15%)

If folks are aware of any other niche products/vehicles, I'd be very interested to learn.  Thanks so much!!

Hey BP community!

Something a lot of homeowners, and even investors, occasionally forget about. PMI...

If you put less than 20% down for your home when you bought it, you're likely paying PMI or private mortgage insurance. This PMI is essentially insurance to help protect the lender if you were ever to default on your loan. Seeing you took out a loan with a higher Loan to Value, you are a riskier borrower, hence the PMI requirement.

However, with the market appreciation going crazy over the last few years, it is very probable you have natural appreciation in your property. If that equity meets or exceeds 20%, you likely will be eligible to get that PMI removed off of your monthly mortgage! PMI cost can varies depending on the price of your home, but a few hundred bucks saved a month is still a huge bonus!

If you think you have this equity, contact your lender ASAP and tell them you'd like to get your PMI removed. They will send out a 3rd party appraiser for as low as $150-$200. If the appraisal comes back showing your sufficient equity, they will take that PMI off.

Lenders typically won’t reach to let you know about this, so it’s important you take action yourself!  If you're here in Denver, shoot me a DM if you’d like a complimentary home value report to see if you qualify! 

Thanks for reading.

I heard from one lender saying that they would not provide loan for a duplex zoned as C-2B. Is that common? 

And any reason for that?

Any lender who does not have that restriction?

Hello, BiggerPockets family! Here is my first post: 

I live in a SLR 4B3B in Torrance, California, with a 7500sft lot. To make some cash flow, we want to build a 200sft addition to the main house, use that part and one existing bedroom + bath, to make it a 1B1B 450s ft JADU. After that, we want to build another 1000 sft 2B2B ADU, partially converted from the garage. I heard that if there are more than one ADU in a SLR lot, when selling it, the buyer won't be able to get conventional loan. See Fanni Mae's guidelines below:https://selling-guide.fanniema... 

question is, does my case ( ADU + JADU) also count as more than one ADU?

If that is the case, instead of JADU, should I make the addition + existing bedroom an in-law suite? I can put a counter, sink, a plug-in electrical hotplate cooktop there, so it's not a real kitchen. And I put double doors/communicating door (like the hotel rooms) between the in-law suit and my living space. Will that solve the problem?

or, another question is, after 10yrs, when I sell the property, how much would it impact the price if the buyer can't get a conventional loan? My husband thinks it's not a big deal because there are a lot of cash buyers out there, but I want to make the buyer's pool as big as possible. 

Would like to know your thoughts. Thanks!!

Hello wonderful community!

I have an acquaintance that is in need of EMD money and I want to ensure that my loan to them for this is protected in case they back out or something falls through. Can anyone help me with any specific contractual paperwork that I can use or point me to a resource that may be able to provide this to ensure that this loan is protected and I get it back in the event that the deal falls through?

Thanks!

I have an Open HELOC that has a 5% 5yr draw and a line of 70k. I recently purchased a property that needs some renovations ~50k. I am trying to figure out what strategy to go with to finance the reno. Do I use a 18 month 0% introductory rate credit card and hold off on using the HELOC unless I need it or use the HELOC. My concern is if housing prices decline more and my HELOC is not drawn on then the can shut it down or cap it where it is at due to my LTV on the loaned property.

Does anyone know if banks are starting to talk about closing down lines of credit or at what point they did this in the Great Recession?

I am confident that I can pay back the 50k in full before the credit card introductory rate expires. I’m using this strategy to avoid dipping into my rental emergency